South Carolina General Assembly
120th Session, 2013-2014

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Indicates Matter Stricken
Indicates New Matter

S. 940

STATUS INFORMATION

General Bill
Sponsors: Senators Young, Massey, Setzler and Peeler
Document Path: l:\council\bills\bh\26025dg14.docx
Companion/Similar bill(s): 4512

Introduced in the Senate on January 15, 2014
Introduced in the House on April 1, 2014
Last Amended on March 26, 2014
Currently residing in the House Committee on Ways and Means

Summary: Capital improvement sales and use tax

HISTORY OF LEGISLATIVE ACTIONS

     Date      Body   Action Description with journal page number
-------------------------------------------------------------------------------
   1/15/2014  Senate  Introduced and read first time (Senate Journal-page 7)
   1/15/2014  Senate  Referred to Committee on Finance (Senate Journal-page 7)
    2/5/2014  Senate  Committee report: Favorable with amendment Finance 
                        (Senate Journal-page 27)
    2/6/2014  Senate  Committee Amendment Adopted (Senate Journal-page 23)
    2/6/2014  Senate  Amended (Senate Journal-page 23)
   2/27/2014  Senate  Amended (Senate Journal-page 33)
   3/11/2014  Senate  Amended (Senate Journal-page 14)
   3/12/2014          Scrivener's error corrected
   3/19/2014  Senate  Amended (Senate Journal-page 30)
   3/20/2014          Scrivener's error corrected
   3/26/2014  Senate  Amended (Senate Journal-page 50)
   3/26/2014  Senate  Read second time (Senate Journal-page 50)
   3/26/2014  Senate  Roll call Ayes-35  Nays-9 (Senate Journal-page 50)
   3/27/2014  Senate  Read third time and sent to House 
                        (Senate Journal-page 20)
    4/1/2014  House   Introduced and read first time (House Journal-page 13)
    4/1/2014  House   Referred to Committee on Ways and Means 
                        (House Journal-page 13)

View the latest legislative information at the website

VERSIONS OF THIS BILL

1/15/2014
2/5/2014
2/6/2014
2/27/2014
3/11/2014
3/12/2014
3/19/2014
3/20/2014
3/26/2014

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

Indicates Matter Stricken

Indicates New Matter

AMENDED

March 26, 2014

S. 940

Introduced by Senators Young, Massey, Setzler and Peeler

S. Printed 3/19/14

Read the first time January 15, 2014.

            

A BILL

TO AMEND SECTION 4-10-470, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE EDUCATION CAPITAL IMPROVEMENTS SALES AND USE TAX, SO AS TO ALLOW A COUNTY THAT DOES NOT COLLECT A CERTAIN AMOUNT IN ACCOMMODATIONS TAX TO IMPOSE THE SALES TAX SO LONG AS NO PORTION OF THE COUNTY AREA IS SUBJECT TO MORE THAN TWO PERCENT TOTAL SALES TAX.

Amend Title To Conform

Be it enacted by the General Assembly of the State of South Carolina:

SECTION    1.    Section 4-10-470 of the 1976 Code, as added by Act 316 of 2008, is amended to read:

"Section 4-10-470.    (A)    The Education Capital Improvements Sales and Use Tax authorized by this article may only be imposed in counties which have collected at least seven million dollars in state accommodations taxes as imposed pursuant to Section 12-36-920(A) in the most recent fiscal year for which full collection figures are available. Once a county meets this threshold it thereafter remains eligible to impose this tax.

(B)(1)    The Education Capital Improvements Sales and Use Tax authorized by this article also may be imposed in a school district without regards to the requirements of subsection (A) if:

(a)    at any time, no portion of the school district in which the tax is to be imposed is subject to more than two percent total local sales tax; and

(b)    the school district in which the tax is to be imposed encompasses the entire county area of one county and extends into one adjacent county.

(2)    Notwithstanding any other provision of this article, if the Education Capital Improvements Sales and Use Tax is imposed pursuant to this subsection, then:

(a)    stated in calendar years, the tax may not be imposed for more than ten years;

(b)    at least ten percent of the proceeds must be used to provide property tax relief by using the proceeds to offset the existing debt service millage levy on general obligation bonds pursuant to Section 4-10-445; and

(c)    the total debt service on bonds issued by the school district resulting from the imposition, net of any premium or accrued interest, shall not exceed ninety percent of the total amount of Education Capital Improvements Sales and Use Tax proceeds estimated to be allocated to the school district during the imposition, minus any amounts dedicated to property tax relief. The Board of Economic Advisors shall provide the estimate of the total amount.

(3)    The State Treasurer, in consultation with the governing body of the imposing district and the county treasurers and auditors of the affected counties, shall distribute and administer the revenues as provided in this article, mutatis mutandis. A resolution for the imposition of the tax in the school district must be directed to the election commissions of the affected counties and a referendum required pursuant to this article must be conducted in the school district. The question in the referendum must be revised to reflect the imposition of the tax in the school district rather than the county. If a majority of those voting in the school district approve the tax, then the tax is imposed in the school district as provided in this article and all references in this article to county, with respect to the imposition, administration, collection, and distribution of the revenues of the tax are deemed to mean the school district. Definitions included in Section 4-10-415 must be construed to extend to a tax allowed to be imposed pursuant to this subsection.

(4)    Notwithstanding any other provision of law, if, within a school district there is imposed the Education Capital Improvements Sales and Use Tax pursuant to this subsection, then no other sales tax may be imposed in that school district if the subsequent imposition causes the total sales tax to exceed two percent in any portion of the school district. This limitation applies so long as this subsection is utilized to impose the Education Capital Improvements Sales and Use Tax.

(5)    Notwithstanding any other provision of law, if the tax imposed pursuant to this subsection and another sales tax are approved at the same referendum, and the approval of both subjects any portion of the school district to more than two percent total local sales tax, then only the tax whose approving resolution was adopted first may be imposed, and the other tax is deemed to not have been approved.

(6)    For purposes of this subsection, a sales tax is a tax levied pursuant to this chapter, pursuant to Chapter 37, Title 4, or pursuant to any local law enacted by the General Assembly.

(C)    Notwithstanding any other provision of this section, the Education Capital Improvements Sales and Use Tax authorized by this article also may be imposed in a county so long as the county or school district imposed a local sales and use tax to fund education capital improvements on January 1, 2014. The Education Capital Improvements Sales and Use Tax may be imposed pursuant to this subsection at any time after the local sales and use tax terminates.

(D)    The Education Capital Improvements Sales and Use Tax authorized by this article also may be imposed in a county which does not meet the collection requirements of subsection (A) so long as:

(1)    the county only has one school district which encompasses the entire county area in which the tax is to be imposed; and

(2)    the county collected at least one million dollars in state accommodations taxes as imposed pursuant to Section 12-36-920(A) in the most recent fiscal year for which full collection figures are available. Once a county meets this threshold, it thereafter remains eligible to impose this tax pursuant to this subsection."

SECTION    2.    Section 4-10-460 of the 1976 Code, as added by Act 316 of 2008, is amended to read:

"Section 4-10-460.    The tax authorized in this article may be renewed and imposed within a county in the same manner as proceedings for the initial imposition of the tax. A referendum on the question of reimposition of a tax must not be held more earlier than within the calendar year which is two years before the date upon calendar year in which the tax then in effect is scheduled to terminate, but any reimposition is effective immediately upon the termination of the tax previously imposed."

SECTION    3.    This act takes effect upon approval by the Governor.

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